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Prices of LCD panels for smartphone displays will remain high to the end of 2016 as there is no letup in demand, according to the latest analysis by WitsView, a division of TrendForce. Prices of mid-range and low-end smartphone panels have risen for three consecutive quarters this year. Moreover, strong short-term demand for mid-range and high-end smartphones with FHD resolution screens are also pushing up prices of FHD Cell panels.
Global market research firm TrendForce reports the production volume of smartphones worldwide totaled around 350 million units in the third quarter of 2016. This figure represents a sequential quarterly increase of 10.4%, which is a new high for the year.
The global capacity of large-size LCD panels by area is projected to grow 6.6% annually to reach 208 million square meters in 2016, reports WitsView, a division of TrendForce. The supply of LCD panels this year has been disrupted by the February earthquake in Taiwan and Samsung Display’s problems with transitioning to a new manufacturing process. WitsView further forecasts that the global large-size LCD panel capacity for 2017 is set to grow at the slowest pace since 2014 at an annual rate of just 3.9%, totaling 216 million square meters.
Soaring prices during the second half of 2016 and the planned closure of Samsung Display’s L7-1 fab have created anxieties about supply shortages in the LCD panel market, according to the latest analysis by WitsView, a division of TrendForce. Due to these factors, the share of 40- to 49-inch models in the combined LCD TV set shipments from the top 15 branded vendors for 2016 will be smaller than the projection made at the start of the year by 3.8 percentage points. Hence, the mainstream size bracket of LCD TV sets is unlikely to make the transition from the 32-inch to the 40- to 45-inch, or the mid-size segment.
WitsView, a division of TrendForce, reports that large-size LCD panel shipments for this August reached 68.84 million units, representing a monthly increase of 9.3%. The growth was attributed to TV and IT brands stocking up for the upcoming promotional sales events. A comparison of results by panel applications also show that tablet panels registered the largest monthly shipment increase at 25%.
